4 Things That May Surprise You About Restaurant Menu Product Prices

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1 – Pricing Is A Strategy. Not all prices on a restaurant menu are equal. Certain restaurant menu price points have an effect on human behavior, and other don’t Knowing which price points matter most has a huge impact on how much money you will make. The food business is a pennies business. If you are able to attract and extra 50¢ on each item you sell to each customers who walks through your doors, you’re in a position to make a lot more money in the long run.

 

2 – Menu Price Focalism Is Important. Anchoring your guests on items that make other items seem less expensive works better than you give it credit for. And working with people who understand the psychology of menu price points and how to help your guests think less about what they are spending and more about the quality of what they are ordering will pay dividends in higher plate contributions and higher check averages.

 

3 – Ending prices in 5 or 9 doesn’t matter as much to your guests as it does to you. In fact, restaurant consumers don’t even think about the price endings. So if you want the 4¢ from each sale, take it. Nobody will care.

 

4 – No Dollar Signs. They make people subconsciously more sensitive TO prices. Just leave them off all together. It will help your customers focus on the things that are important rather than that they’re spending money.

Why McDonald’s Recent Business Decline Is Not About The Food

According to Nations Restaurant News, McDonald’s Corp. executives said [this past] Wednesday they will cut eight items from its menu in January as part of a broader effort to overhaul its service model to meet the needs of different type of customers. The article goes on to describe the radical marketing approach they are going to take to try to reverse the downward spiral they find their business in.

If it were only that simple. What plagues McDonald's is less about the food and more about their public image. They have been the poster child for what's wrong with American business in the past few years. Images of low paid workers picketing and documentaries pointing to how the corporate executives make so much more money than their workers, it may take more than just a product change to make a difference in their business.

It's like a perfect storm pitted against them. Couple the wage issues with the addition of calories on the menu, add that to a recovering economy with low gas prices and suddenly everything that made Mc Donald's the kings of the recession seem to be pulling the business apart at the seams.

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